VAST Plans New Warehouse Expansion in the Jabodetabek Area

INDUSTRY.co.id - Jakarta, 2 November 2023 — Seasoned warehouse property developer with more than 10 years of experience, PT Vastland Indonesia Tbk (IDX: VAST), plans to take advantage of the momentum of recovering demand for warehousing in the Jabodetabek area by increasing the number of warehouses.

Demand for warehousing has increased since the end of the pandemic. As of late, the transportation and warehousing sector has shown an increase in performance, rising from 3.24 percent in 2021 to 19.87 percent in 2022.

For the Jabodetabek area, demand for warehouses has increased with occupancy reaching 88% in the third quarter of 2023. According to the 3Q 2023Jakarta Property Market Overview, it is predicted that there will be new supply of around 1 million square meters in 2025.

VAST, which currently owns and manages warehouses in Lampung, Riau, Palembang, Bengkulu, Jambi and Klaten, plans to expand its warehouse expansion in the Tangerang area. The area was targeted due to several advantages it offers, Tangerang is a city adjacent to Jakarta which enjoys the benefit of facilities such as various toll road access e.g.: the Serpong – Balaraja toll gate, Jakarta-Merak, Soekarno-Hatta Airport Toll Road, Jagorawi Toll Road, and others.

"Strategic location is one of the criteria we apply in order to accommodate the needs of our various tenants." VAST Finance Director Stanley V Gunawan explains.

"This expansion can be done either by purchasing an operational warehouse from another party or by building a new warehouse from scratch. This planned Tangerang expansion is expected to increase VAST's revenue."

Vastland Indonesia also recently published its financial report for the 3rd quarter of 2023. The report illustrates how VAST continues to post positive results with a revenue growth of 9.9% QoQ, increasing to 6.5 billion rupiah in 3Q23 compared to 5.9 billion rupiah in 2Q23.

The improvement in revenue was also driven by efficiency which was reflected in the reduction in cost of revenue by 40.9% QoQ from 932 million rupiah in 2Q23 to 550 million rupiah in 3Q23, and made net profit increase more significantly by 77.7% QoQ from 1.9 billion rupiah in 2Q23 to 3.3 billion rupiah in 3Q23.

In terms of liquidity health, VAST succeeded in improving a stable financial balance with a DER of 0.17 in 9M23 (vs. 0.39 in 9M22), and improving the current ratio to 0.99 in 9M23 (vs. 0.14 in 9M22) that is caused by both increase of current assets and decrease of current liabilities.

VAST also saw an increase in cash and cash equivalents to 10.11 billion rupiah in 9M23, compared to 846.3 million rupiah recorded in 9M22 which can be implemented in the company's next expansion.